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CC SR 20190618 06 - Employee Housing Code Amendment RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/18/2019 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to initiate a code amendment for employee housing pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) as identified in the City’s 2013-2021 Housing Element (Case No. PLCA2019-0005) RECOMMENDED COUNCIL ACTION: (1) Initiate a code amendment to Section 17.02.020 of the City’s Municipal Code to implement Program No. 9, as identified in the City's 2013-2021 Housing Element, to explicitly state that employee housing is allowed in the City’s Single -Family Residential zoning districts as a permitted use pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: So Kim, Deputy Director/Planning Manager REVIEWED BY: Ara Mihranian, Director of Community Development APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Excerpt from the 2013-2021 Housing Element for Program No. 9 (page A-1) BACKGROUND AND DISCUSSION: The State of California requires every city and county to prepare and adopt a Housing Element as part of their respective General Plans. The State also requires that each local government periodically review and revise its General Plan Housing Element. This is the only General Plan element that a local jurisdiction must periodically update. In compliance with state law, the City adopted its 2013-2021 Housing Element in February 2014, and it was certified by the California Department of Housing and Community Development in April 2014. According to state law, the Housing Element is required to develop program s to accommodate the City's share of the regional housing need. Such programs must: 1  Identify actions to make sites available to accommodate the City’s share of the regional housing need [Government Code §65583(c)(1)];  Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households [Government Code §65583(c)(2)];  Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement and development of housing [Government Code §65583(c)(3)];  Conserve and improve the condition of the existing stock of affordable housing [Government Code §65583(c)(4)];  Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, familial status, or disability [Government Code §65583(c)(5)]; and  Promote energy conservation [Government Code §65583(a)(8)]. The City implements these programs through various subprograms identified in the Housing Element. Specifically, Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act (see Attachment A). This program requires the City to amend its zoning ordinance to permit employee housing for six or fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act). Employee housing is defined as privately-owned housing that is provided by an employer in connection with any work, whether or not rent is involved (Health and Safety Code §17008(a)). The City's 2013-2021 Housing Element identifies certain actions the City will take during the "planning period." Pursuant to Health and Safety Code §17021.5, employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. Additionally, the City cannot impose a conditional use permit, zoning variance, or other zoning clearance upon employee housing that serves six or fewer employees that would not be required of a family dwelling of the same type in the same single-family zoning district. Currently, under the existing Single-Family Residential zoning district (Development Code §17.02), any use which is specifically required to be permitted in a single -family residential district by state or federal law is permitted. As a result, employee housing is already implicitly allowed. The proposed code amendment would explicitly list employee housing as a permitted use. Pursuant to Municipal Code §17.68.030.8, "an amendment to any part of [the City's Development Code]...may be initiated by the Direct or and/or Planning Commission, upon petition to the City Council. The City Council shall review the petition to determine if the requested amendment and/or change is necessary or desirable." As employee housing is already inherently allowed and the code amendment is a required Housing Element program, Staff is requesting that the City Council reconsider and initiate this code amendment. 2 Upon directing Staff to pursue said code amendment, Staff will present a draft ordinance to the Planning Commission for review and consideration at a duly-noticed public hearing. The Planning Commission will forward a formal recommendation to the City Council for consideration at a noticed public hearing. Thus, the City Council will have the opportunity to review the specific language of the ordinance at a future hearing. CONCLUSION: Based upon the foregoing discussion, Staff recommends that the City Council initiate a code amendment relative to employee housing pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) as required by the City’s 2013-2021 General Plan Housing Element. ALTERNATIVES: In addition to Staff’s recommendation, the following alternatives are available for the City Council’s consideration: 1. Receive and file this report, and direct Staff to take no action at this time; however, this would not be consistent with the City's certified Housing Element or State law. 2. Provide other direction to Staff or take other action, as deemed appropriate. 3 SECTION 3 – HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS 3-11 More specifically, Government Code Section 65583(c)(3) states that a housing program must: Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, or provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. 1. Housing Needs, Goals, Policies and Objectives The governmental constraints analysis found a need to address farm employee housing. Goals  Attain barrier and constraint free City codes, ordinances, and policies.  Provide codes, ordinances, and policies that lead to the improvement of the housing status of residents. Policies  Remove existing governmental constraints to the maintenance, preservation, improvement and development of housing.  Affirmatively further housing goals through City codes, ordinances and policies that enhance the housing quality of life experienced by residents.  Continue to implement land use regulations that facilitate meeting affordable housing needs.  Continue the processing of new housing developments designed to address the needs of all income groups. Objectives The housing program efforts do not involve the production or rehabilitation of housing. Therefore, quantified objectives cannot be set for this Program Category. 2. Housing Programs Program #9 - Zoning Ordinance Amendments to Remove Governmental Constraints – Employee Housing Act According to the 2010 Census, none of the employed population in Rancho Palos Verdes works in the industries of farming, fishing or forestry, and there is no agriculturally zoned land in the PROGRAM CATEGORY #3: ADDRESS AND, WHERE APPROPRIATE AND LEGALLY POSSIBLE, REMOVE GOVERNMENTAL CONSTRAINTS TO THE MAINTENANCE, IMPROVEMENT AND DEVELOPMENT OF HOUSING A-1 SECTION 3 – HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS 3-12 City. Therefore, given the apparent absence of farmworkers in the community, the City has not identified a need for specialized farmworker housing beyond overall programs for housing affordability. California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit employee housing for six or fewer employees as a single-family use. Employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies t hat the employee housing is a business run for profit or differs in any other way from a family dwelling. Jurisdictions cannot impose a conditional use permit, zoning variance, or other zoning clearance of employee housing that serves six or fewer employees that are not required of a family dwelling of the same type in the same zone. The City will amend the Zoning Ordinance to provide consistency with the Employee Housing Act. Employee housing is privately owned housing that is provided by an employer in connection with any work, whether or not rent is involved. [See Health and Safety Code § 17008(a)] The zoning provisions will be enacted by June-July 2014. Government Code Section 65583(c)(4) states that a housing program shall describe actions to: Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public and private actions. 1. Housing Needs, Goals, Policies and Objectives Housing in need of rehabilitation is estimated to range from 300 to 500 housing units. Goals  Achieve a housing stock free of substandard structures.  Conserve and improve the existing stock of affordable housing. Policies  Continue to implement the Housing Code Enforcement Program.  Implement a Home Improvement Program when funds become available. Objectives  Housing code enforcement at an average level of 10 new cases per month for all income levels during the 2013-2021 planning period.  Rehabilitation of five owner-occupied housing units. PROGRAM CATEGORY #4: CONSERVE AND IMPROVE THE CONDITION OF THE EXISTING STOCK OF AFFORDABLE HOUSING A-2